For the purposes of the hotel tax, a hotel is considered to be any building in which members of the public rent sleeping accommodations for $15 or more per day. Local hotel taxes apply to sleeping rooms costing $2 or more per day.

The tax covers hotels, motels, and bed and breakfasts, as well as condominiums, apartments, and houses rented for less than 30 consecutive days.

Hotel tax does not apply to hospitals, sanitariums, nursing homes, student dormitories operated by colleges and universities; or condominiums, apartments, and houses leased for more than 30 consecutive days.

Yes, there is state hotel tax on meeting and banquet rooms. The 6 percent state hotel tax applies to any room or space in a hotel, including meeting and banquet rooms.

Local hotel taxes, however, are due only on those rooms ordinarily used for sleeping. There are no state or local hotel taxes on meeting and banquet rooms located in a building where no sleeping accommodations are provided.

The following organizations and individuals do not have to pay hotel tax:

The U.S. government and its employees traveling on official business

Foreign diplomats issued a tax exemption card by the U.S. Department of State, unless the card specifically excludes hotel tax

Certain Texas state officials with special hotel tax exemption cards (includes heads of state agencies, members of state boards and commissions, judicial officials at the district court level and above, state legislators, and legislative employees)

Permanent residents, that is, guests who occupy a room for at least 30 consecutive days; any interruption in the term of occupancy will void the exemption (guests who stay 30 or more days and notify the hotel in writing of their intention beforehand are exempt from the day of notification, while guests who do not notify the hotel must pay the tax the first 30 days and are exempt thereafter)

Some nonprofit entities and their employees traveling on official business; the entity must have received a hotel tax exemption letter from the Comptroller's office and the reason for the exemption must be written on the exemption certificate, for example, "exempt per Electric Cooperative Act, Utilities Code, Chapter 161" or "exempt per Telephone Cooperative Act, Utilities Code, Chapter 162."

Some hotels collect tax after a permanent resident gives written notice because a hotel is liable for tax if a guest fails to stay for 30 consecutive days and thus may prefer to collect tax and then later give the guest a refund or credit.

For a hotel guest to claim a hotel tax exemption, the exempt organization or employee must give the hotel a completed Hotel Occupancy Tax Exemption Certificate (form 12-302) and proof that the organization has received a letter of hotel tax exemption from the Comptroller's office at the time of registration.

The on-line list of organizations that have received hotel tax exemption is located through the Comptroller's Exemption Search.

Hotels need the following supporting documentation to verify a hotel tax exemption:

Federal employees traveling on government business - a valid government identification card

Designated Texas state employees - a special hotel tax exemption photo ID or card that states holder is exempt from hotel taxes

Foreign diplomats - a tax exemption card issued by the U.S. Department of State that exempts the diplomat or mission, unless the card specifically excludes hotel tax

Employees and representatives of a specific nonprofit entity or a nonprofit charitable, educational, or religious organization traveling on organization business - a Comptroller's letter of hotel tax exemption or verification that the organization is on the Comptroller's list of exempted entities, such as a printed copy of the Comptroller's website listing the organization as exempt for hotel tax.